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Virtual Vice

4 October 2010 Posted by: alessa 2 Comments

By Wu Wenyu

The new trend for the Tech-savvy Gamblers

Speaking of casinos, most will think of Macau, Genting, Las Vegas and of course the newly opened Integrated Resorts in Singapore. However, tech-savvy gamblers are now taking their habit online. With just a click, most people get to try their luck at online or virtual casinos. Though a really convenient way to experience the thrill of hitting the Jackpot, the legal issue of online gambling remains a grey area that most are uncertain of but continue to ignore.

The popularity of online casinos is undeniable. A simple search using Google will churn up an astonishing result number of 71,600,00! Most of the gambling platforms however are registered overseas, with the top few like betfair.com and 888.com being UK-registered. Forums, online gambling advisory websites are also set up to share information on newly registered sites, novel gambling games and trends in various countries. A few, surprisingly, are starting to give brief overviews of the law on online gambling in various countries as well.

Singapore’s Stand on Online Gambling

Singapore’s take on online gambling has never been clear-cut. Some says that the country’s legal stand on the issue is rather uncertain while some view online gambling as completely illegal in Singapore. Two acts govern gambling and betting in Singapore, namely the Betting Act and the Common Gaming House Act. These Acts provide exemptions for betting by members and officers of racing clubs or associations under the control or supervision of their officers, subjected to the notification by the Minister in the Gazette. Thus two legal operators are recognized locally – Singapore Pools and the Singapore Turf Club. But complications arise for online betting and casinos: with most of the operators being foreigners who registered their sites overseas, it is hard to determine if gambling activity by Singaporeans in their private homes will fall within the ambit of these Acts.

Furthermore, no individuals have been charged with illegal online gambling in their private homes, save for three cases in the past threes years. In those cases, the accused opened up cafes or common gaming areas with computers set up for the purpose of online gambling. It is interesting to note though, that these persons were prosecuted not simply because they gambled online or visited online casinos, but rather because they set up common and public spaces for betting, using online casinos as a means to generate profits. As such, they have committed offences under the Common Gaming House Act and were penalized accordingly.

The issue is definitely made more complicated with the recent opening of the Integrated Resorts and Casinos in Singapore. With the Casino Control Act already in force, Singaporeans will no doubt question its impact on online casinos. But the Casino Control Act mainly seeks to deal with the regulations of the Casinos established locally, and to set out the responsibility of the regulatory authority. It deals with Casino premises and licensing and does not seem to have any tangible effect on the virtual world of Casino and gambling.

Other Countries’ Stand on Online Gambling

Other countries’ stand on online gambling and casinos may just be as confusing. The US for example has the Wire Wager Act and the Unlawful Internet Gambling Enforcement Act. The Wire Wager Act provides for betting or wagering using a wire communication facility. But how much this applies to Internet wagering is often questioned. The Unlawful Internet Gambling Enforcement Act on the other hand, criminalises the facilitation of transfer of money to an online gambling site by a bank or financial institution in order to restrict funding to casino accounts and sites. But again, whether jurisdiction extends to foreigners and overseas casino operators are equally unclear.

As for most countries of the European Union, online gambling is legal and regulated. Member Countries are bound by the European Communities Treaty and cannot prohibit residents from accessing a service provided by operators from other Member States. Hence prohibiting their citizens from visiting online casinos will be a breach of Treaty Law. As such many countries have started regulating online gambling instead.

Conclusion

With the opening of Casinos in Singapore, online gambling will only become more popular. After all, what better ways are there to get around the $100 Entrance fee and still gamble away? It needs to be noted however, that while the law on online gambling remains unclear, public gambling will always be an offence in Singapore. The Singapore government will only become more cautious and strict in enforcing the laws on public gambling due to the concern of the negative impacts brought about by the opening of the Casinos.

2 Comments »

  • The Singapore Law Review » Blog Archive » Juris Illuminae Vol. 6 Issue 6 (October) said:

    [...] -Priscilla Gan Bus(Stops) – Dickson Li When Casinos Don’t Pay Up – Ray Hong Virtual Vice – Wu Wenyu Why You Shouldn’t Win – Mubin Shah Entry Levy: Uniquely Singapore? [...]

  • Ivan said:

    If I were to seek legal advice to check whether Internet Gambling is legal as a punter in Malaysia, which kind of Law firm can I approach and roughly need to pay how much to lawyer?